Goolsbee is sounding the alarm again, saying the AI boom is driving up inflation—and the impact goes well beyond the electricity bills of data centers.
In plain English: computing power is driving up electricity demand, chips are competing for production capacity, and capital is competing for talent. All those costs are being passed on to consumers. Some people within the Fed are starting to use AI as a new explanation for sticky inflation, putting another question mark over the path to rate cuts. Don’t expect macro conditions to give risk assets a boost in the short term—the key is whether BTC can stand on its own.
$BTC #FederalReserve
In plain English: computing power is driving up electricity demand, chips are competing for production capacity, and capital is competing for talent. All those costs are being passed on to consumers. Some people within the Fed are starting to use AI as a new explanation for sticky inflation, putting another question mark over the path to rate cuts. Don’t expect macro conditions to give risk assets a boost in the short term—the key is whether BTC can stand on its own.
$BTC #FederalReserve